Taxation of COVID-19 grant to a business from a local non-profit

[Gregory Gandrud]

An S-corp received a COVID-19 grant from a local non-profit. It that grant includable in taxable income?

[qbteachmt]

I've worked a lot with the grants that went to businesses from the State and the County and even from the local health departments, and these are taxable to the business. I would treat a grant between entities as taxable. Keep in mind that it would be a wash event, because the grants were supposed to help offset unexpected costs or to maintain business operations, which would be reported for deduction.

[mhkdgal]

Where would these taxable grants be entered in Lacerte and show up on tax return?

[qbteachmt]

Add the amount to the Business income.